ONEOK’s deal to acquire the remaining stake in EnLink is expected to close in the first quarter of 2025. (Source: Shutterstock)
ONEOK has agreed to a $4.3 billion deal to acquire the remaining stake in EnLink—the final stage of an acquisition first started in August.
ONEOK closed on a $3.3 billion deal to acquire a controlling interest in EnLink in October.
On Nov. 24, ONEOK announced it will acquire the rest of EnLink, trading 0.1412 common units of ONEOK stock for each outstanding publicly held unit of EnLink stock.
The companies determined the exchange ratio by dividing $15.75 per unit, equal to EnLink's market close price on Nov. 22, by ONEOK's 10-day volume-weighted average price (VWAP).
ONEOK estimates it will issue 37 million shares in the proposed transaction, representing approximately 6% of ONEOK total outstanding shares.
"This tax-free transaction to acquire the remaining outstanding EnLink units is expected to be accretive to ONEOK shareholders and provide EnLink unitholders with significantly greater trading liquidity and an attractive dividend yield," Pierce H. Norton II, ONEOK president and CEO, said in the press release.
The transaction is expected to be completed in the first quarter of 2025. Both company boards voted unanimously in favor of the transaction, according to the press release.
Goldman Sachs & Co. served as lead financial adviser to ONEOK and Kirkland & Ellis served as ONEOK's legal adviser. Evercore acted as financial adviser and Baker Botts acted as legal adviser to EnLink.
ONEOK’s original $3.3 billion deal on Aug. 28 for Global Infrastructure Partners’ (GIP) common shares of Enlink amounted to a 43% ownership stake in the company. At the time of the deal, ONEOK said it intended to buy EnLink’s remaining publicly held common units of EnLink in a tax-free transaction.
ONEOK also had announced it was acquiring Medallion Midstream, the largest private crude-based midstream network in the Permian Basin, for $2.6 billion in cash. ONEOK announced the Medallion deal was completed at the end of October.
ONEOK has been focusing on its primary footprint in the south central U.S.
The company also announced a $1.2 billion deal on Nov. 19 to sell three pipeline networks in the Midwest and north-central U.S. to DT Midstream.
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